Bitcoin Drops to 6-Month Low, Ether Eyes Bearish Cross as US Stock Index Futures Erase Early Gains

Bitcoin, ether and the broader crypto market faced another wave of selling during Monday’s European hours as U.S. stock index futures erased early gains, signaling an extension of last week’s risk declines.

Bitcoin fell to $33,600, the lowest level since July 24, even as technical indicators signaled oversold conditions.Ether, the second-largest cryptocurrency, slid 10% to $2,270, the lowest since July 28.The native token of Ethereum’s blockchain has lost 38% this month. Its daily chart shows an impending death cross, a bearish crossover of the 50- and 200-day moving averages.Other prominent coins like Solana’ SOL, Cardano’s ADA and Polkadot’s DOT fell 12% to 15%.The latest round of sell-off comes after Goldman Sachs predicted a faster pace of Fed tightening if inflation continues to rise.“We see a risk that the [Federal Open Market Committee] will want to take some tightening action at every meeting until the inflation picture changes,” Goldman economist David Mericle noted in Saturday’s client note, according to CNBC.The Fed fund futures have priced in four quarterly rate hikes for 2022.

Leave a Comment